Financial Help and Incentives for First-Time Homebuyers in Nova Scotia

Buying your first home is a major milestone — but for many people, the upfront costs can feel daunting. Fortunately, there are financial programs, tax credits, and savings tools designed to help first-time homebuyers ease into ownership and make their dreams a reality.

Understanding what’s available can help you keep more money in your pocket, reduce upfront expenses, and make a plan that fits your budget in today’s market. The Government of Canada offers several housing programs and resources to support first-time buyers, which can be explored in more detail here:
https://www.canada.ca/en/services/finance/housing.html

What Qualifies You as a First-Time Homebuyer?

In Canada, a “first-time homebuyer” is typically someone who has not owned and lived in a home in the current calendar year or the previous four years. Even if you’ve owned a property in the past, you may still qualify under this definition, depending on your situation.

Home Buyers’ Plan (HBP)

The Home Buyers’ Plan allows eligible Canadians to withdraw funds from their Registered Retirement Savings Plan (RRSP) to use toward a down payment on a qualifying home — without paying tax at the time of withdrawal. Each qualifying buyer can access up to $60,000 from their own RRSP, which means a couple can potentially use up to $120,000 combined.

Once you use the HBP, you’ll have a set period to repay the amount back into your RRSP, interest-free. Full eligibility details and repayment rules can be found here:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/home-buyers-plan.html

First Home Savings Account (FHSA)

The First Home Savings Account is designed specifically to help Canadians save for their first home with significant tax advantages. Contributions are tax-deductible, similar to an RRSP, and withdrawals used for a qualifying first home purchase are tax-free, similar to a TFSA.

You can contribute up to $8,000 per year, with a lifetime contribution limit of $40,000. Unused contribution room carries forward, allowing flexibility as you save. More details on how the FHSA works are available here:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-savings-account.html

First-Time Home Buyer Incentive (Program Ended)

There was previously a federal shared-equity program that helped eligible first-time buyers reduce their monthly mortgage costs. This program is no longer accepting new applications, but it is still often referenced online, which can cause confusion for buyers.

Tax Credits for First-Time Homebuyers

First-time buyers may also qualify for tax credits that help offset some of the costs of purchasing a home.

Home Buyers’ Amount
Eligible buyers may claim the Home Buyers’ Amount when filing their income tax return for the year of purchase. This non-refundable tax credit is intended to help cover expenses such as legal fees, inspections, and land registration. Details on eligibility can be found here:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/first-home-buyer/home-buyers-amount.html

GST/HST Housing Rebates
If you’re purchasing a newly built home, you may qualify for rebates that return a portion of the GST or HST paid on the purchase price. Additional rebates and proposed incentives may apply depending on timing and eligibility.

Other Ways Financial Assistance Helps

In addition to federal programs, first-time buyers should explore:

• Potential closing cost credits or rebates

• Registered savings strategies that reduce tax burden

• Mortgage options designed for first-time buyers

Understanding how these tools work together can significantly reduce the financial pressure of buying your first home.

Final Thoughts

There are multiple ways to make your first home purchase more affordable — from tax-advantaged savings accounts to RRSP withdrawals and tax credits. Knowing what you qualify for and how to use these tools together can make homeownership feel far more achievable.

Thinking about buying your first home in Truro or Colchester County?
The Truro Home Team can help you understand which incentives apply to you, connect you with trusted local lenders, and guide you through the buying process with confidence. Reach out anytime to start the conversation.